China on Wednesday announced new measures, including a CNY15 billion (USD2.4b) fund, to aid cash-strapped private small businesses as economic growth moderates.

The government will also extend preferential income tax policies for small enterprises until 2015 and encourage banks to issue special bonds to raise funds to lend to these companies, according to a statement released after a State Council meeting presided by Premier Wen Jiabao on Wednesday.

The State Council, China's Cabinet, said small companies have "significant strategic importance" to helping China keep stable and rapid growth amid a global financial meltdown.